Correlation Between SLR Investment and Lion One
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Lion One at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SLR Investment and Lion One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and Lion One Metals, you can compare the effects of market volatilities on SLR Investment and Lion One and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SLR Investment with a short position of Lion One. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Lion One.
Diversification Opportunities for SLR Investment and Lion One
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SLR and Lion is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Lion One Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lion One Metals and SLR Investment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SLR Investment Corp are associated (or correlated) with Lion One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lion One Metals has no effect on the direction of SLR Investment i.e., SLR Investment and Lion One go up and down completely randomly.
Pair Corralation between SLR Investment and Lion One
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.6 times more return on investment than Lion One. However, SLR Investment Corp is 1.67 times less risky than Lion One. It trades about 0.22 of its potential returns per unit of risk. Lion One Metals is currently generating about -0.19 per unit of risk. If you would invest 1,417 in SLR Investment Corp on August 28, 2024 and sell it today you would earn a total of 131.00 from holding SLR Investment Corp or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Lion One Metals
Performance |
| Timeline |
| SLR Investment Corp |
| Lion One Metals |
SLR Investment and Lion One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Lion One
The main advantage of trading using opposite SLR Investment and Lion One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Lion One can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lion One will offset losses from the drop in Lion One's long position.| SLR Investment vs. The Bank of | SLR Investment vs. Superior Plus Corp | SLR Investment vs. NMI Holdings | SLR Investment vs. Origin Agritech |
| Lion One vs. Franco Nevada | Lion One vs. Agnico Eagle Mines | Lion One vs. Superior Plus Corp | Lion One vs. NMI Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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